Zimbabwe firms position themselves for growth

Zimbabwe firms position themselves for growth
Published: 23 April 2018
ZIMBABWE'S trade deficit widened to $317,2 million last month from $227,6 million in February in what economic analysts attribute to more demand for critical raw materials as businesses position themselves for growth.

The Zimbabwe National Statistics Agency (ZimStat) revealed that during the period under review, imports totalled $605,8 million against $288,6 million worth of exports.

In February, Zimbabwe imported goods worth $574,8 million against exports amounting to $347,2 million.

In separate interviews, economic analysts said the rise in business confidence has seen companies repositioning themselves for growth hence industries were bound to import critical raw materials.

"One of the obvious reasons why the trade deficit has widened is the rise in the optimism in business and also companies repositioning themselves for revitalisation and growth," said Dr Davison Gomo.

"In preparation for that there will be a decline in terms of what we export and I see that as a temporary situation because once all the companies are back to normal, we should be able to produce products that move out of the country," he said.

The new political dispensation under President Emmerson Mnangagwa has said Zimbabwe is open for business and this has seen the country registering more than $7 billion worth of approved foreign direct investments in the past four months.

Economic commentator, Ms Wendy Mpofu echoed similar sentiments saying the trade statistics for the period under review were not reflective of business deterioration.

"Right now, the companies are preparing themselves to take off," she said. Another economist, Ms Chipo Warikandwa said companies were re-organising and as such there was pressure on resources going out.

During the period under review, imports from South Africa, the country's major trading partner, amounted to $271,8 million up from $261,4 million in February. Zimbabwe trades with a number of countries across the globe among them Zambia, Uganda, Egypt, Angola, Mozambique, Singapore, Thailand, China, United Kingdom, New Zealand, Japan, China and Russia.
- zimpapers
Tags: Firms,


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